ukraine crisis. russian troops roll one of the latest plans to stop them. u.s. stocks tumbling. how the ukraine crisis is hitting your 401(k). snow emergency. a massive winter storm blows east with more freezing temperatures. hello, i'm john berman in new york. >> i'm michaela pereira from beverly hills after a big night at the oscars. the tweet that stole the

shoechlt a little blue sky popping out. mother nature kind of had us all on egg shells. they thought it was going to rain on the red carpet. it didn't. the red carpet went off without a hitch and the show went off without a hitch. all everybody is saying is that the show, oscars, 86. the 86th academy awards was a huge success. john? >> we'll get back to the glamour in a bit. thanks so much, micayla. russia's official news agency says russia has given ukraine forces until tomorrow morning to surrender or they will storm military bases on the crimean peninsula. ukrainian troops refusing to surrender to what appear to be russian forces, both sides armed and ready. u.s. officials confirmed that russian forces have complete operational control of the crimean peninsula. while this is happening, they are said to be calling for the annexation of crimea. we will get back to that in just

a moment. other news, a winter blast smacking a bill chunk of the u.s. more snow and more ice from the midwest to the northeast. and parts of the south. tens of millions of people are in this storm's path. this could dump a foot of snow and almost an inch of ice which could be even month are dangerous in some areas. federal offices are shut down today. there will be no white house prooefing today because of this storm. travel across the country is snarled. you can see thatic p yur right there from washington. it looks ugly. there have been two weather-related deaths right now, traffic deaths. >> do you understand the charges, mr. mipistorius? >> i do, my lady. >> how do you plead? >> not guilty, moo i lady. >> he heard it right there. oscar pistorius pleads not guilty to the premedicated murder of his girlfriend. he says he mistook her for a burglary. the first witness at his trial was a next-door neighbor who described what she called the

blood curdling screams the night that reeva steenkamp was killed. let's get back to the news. it has so much of the world on edge this morning. russia is tightening its grip on ukraine's crimean peninsula. they are discussing other ways to implement a diplomatic chokehold on moscow. will the threat force vladimir putin to withdraw his troops from ukraine? can you force vladimir putin to do anything? ukrai ukraine warns it is on the brink of disaster. our matthew chance is in kiev. christian amanpour joins me in new york. the facts on the ground indicate that ukraine has effectively lost the peninsula. tell me, what es t's the mood i capital? >> reporter: there is a great

sense of anger among many of the ukrainians. you speak to men in the square and they say they are pretty much prepared to fight for their country, to fight to maintain ukraine's territory. people are singing patriotic songs. behind that, you get the sense that people are deeply concerned, even fearful about what a full blown conflict with russia. the giant neighbor to the east of ukraine, would actually mean. the interim officials of the administration here in kiev, they have been saying they want this to resolve diplomatically. at the same time, they have called up their reservists and started putting them on a military footing. there is a real sense tension and dane jury? the air, john. >> also, matthew chance in dehe have, anger, fervor, concern. christiane amanpour, you just spoke to the woman who cob the central figure in ukraine's

future. what is she saying right now, anger, fervor, concern? >> incredible concern. she is a real power broker there. she is a real player. we understand we can not face off against the russians. if there is further russian encouragement, if things get worse, then ukrainians who are already angry, already patriotic, will defend their country. look, they have already given their lives. you know, 80 plus people were killed in madon square during the protest, the uprising just a couple of weeks ago. this is a very tricky situation. john kerry is headed there to presumably tell the ukrainians, not just sport but don't do anything. keep your cool. do not provote and give moscow any more pretext than it is already manufacturing and trumping up to come into ukraine. i asked her what is it they want

from the west now that there is this parent draft law going through the russian parliament giving putin more ammunition about annexing crimea? >> translator: literally, several minutes ago, the russian tuma has started the law of annexation of crimea from ukraine. it is only a question of time when it is being voted. we will know that votes will be found. that's why russia is escalating the crisis now and the world should understand, realize that ukraine on its own won't be able to solve this issue with russia on its own, absolutely not possible. >> the former u.s. ambassador to nato, nicholas burns, says, it is over in crimea. russia has taken the crimea. vladimir putin is not about to give it back. >> that's a very dangerous statement for a former official to make.

the united states is the leader of nato. the united states has leverage with russia. the united states cannot allow this aggression to stand. it is a foreign country invading another country. the u.s., britain, and russia signed on to an agreement, called the buddha pest agreement that protects ukraine's territorial territory. this is where it is going to get tricky. they are obligated to protect it. i know they don't want to go in militarily. to say it is over is to give up the plot. that is the whole problem with putin. people have been bending over and not resisting putin for all the years he has been in power. >> let's talk about the problem with vladimir putin. in the "new york times" there was a statement that jumped off the page from german chancellor, angela merkel. she told mr. obama after speaking with mr. putin, she was not sure he was in touch with reality. people briefed on the call said, in another world. >> that jumped off to me as well. i was very, very disturbed by that.

whatever we might think of putin and he is obviously neither a democrat nor does he run a first world economy. there has been so much that's gone on in russia that simply defy international procedures and norms that people have thought, he may be mack vel yan but at least he is rational. if angela merkel, who may there, they have the most leverage. if angela merkel is saying that he may not be in touch with reality, that is a very scary position to be in. right now, the west has to start ratcheting up its leverage and its economic leverage, its trade leverage. ukraine and russia is heavily integrated into the western economy nd athings will hurt it. you heard chris steep romance

report, not only is his stock market and his ruble has plunged. it could be equally scary. he could outmaneuver the rest. >> it is not just what happens in ukraine and russia. this is the most serious confrontation between east and west since the end of the cold war. this is will be an example for international law if it is allowed to stand. >> everyone is watching. great to have you here. appreciate it. ahead, president obama faces a real test of leadership just like we are talking right now. the crisis in ukraine, it escalates. not everybody thinks the president is doing such a great job right now. we'll look into that. a snow emergency of national proportions right now. a winter storm sets off warnings across the eastern half of the united states. when will this let up, if ever? when it comes to good nutrition...i'm no expert.

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the breaking news involves the crisis in ukraine. the latest seems to be that russia has issued an ultimatum to the ukrainian forces still in the crimean peninsula. i am joined by christiane amanpour. up until this point, there are these russian troops, some 6,000, maybe more, that have been occupying the crimean

peninsula. there hasn't been any real fighting. they have been taking these positions without any fight whatsoever. now, there is this ultimatum. some may be loyal to kiev. >> who issued that order? you know the current russian troops are wearing no insignia, no weapons or systems that show that we are the army of russia. they are russian speaking. who are they really? it gives the russians a little wiggle room. if this is a formal order, with he need to know it is. that i the russians upping the anti-a ante. that is going to be a very difficult thing for the withest to de with. if that deadline happens and secretary kerry is in the air and lands to the news, the russians have taken all the

bases and military garrisons in cry mere crimeria. some of them, many i have interviewed in the past say they are not that hopeful of any quick resolution to this, hopeful that in the end, common sense will prevail and that there will be an attempt to give russia a face-saving way out of this, use some of these osce and other european mechanisms that russia is part of, through fact-finding missions and to settle whatever anxieties russia has. it would be a major escalation if russia does this. >> we have 6,000 russian troops occupying the crimean peninsula. the people on this peninsula don't necessarily mind. they are not upset. >> i wouldn't say that. i disagree with that analysis. 59% of the crimea is ethnically russian. there are also tartars there, a

whole different ethnicity which has nothing in common with russia and does not want to be annexed by russia and was there before the ethnic russians. the majority of ukrainians do see themselves as ukrainians and not necessarily as russians. it is absolutely true that they have now been whipped up into a frenzy of fear and national is stick fervor by a very cynical ploy by the russian media to whip them up. there has been no violence of any major proportions in crimea. no actions taken by the interim ukrainian government against the people of eastern ukraine or, indeed, the crimea. this is all manufactured by russia. president putin says a rebuilding of the soviet empire. he cease ukraine, the one thing that we have to understand is that for putin, ukraine is excess steng excess stengs. it is massively important. for europe and the u.s., it isn't.

who is going to call putin's bluff on this. really now, if they don't want to get involved militarily, which they won't, to absolutely stand up for international law. it is inshrined in law that ukraine's territorial sovereignty and signed by russia, it is enshrined in law that is a fact. >> does vladimir putin care? >> there is a heavy cost to pay. the ruble is crashing, the stock market is crashing. they are intricately linked with the west. >> if they are willing to take them. this is a problem. right now, in the g-8 as i said earlier, germany, exerts, i believe, the biggest influence on russia but the germans are not that thrilled with the u.s. and u.k. proposal that russia should get kicked out of the

g-8. >> let's speak and see if they listen. the ratcheting up of these sanctions, punitive actions, has to happen. >> the point here of this terrific discussion we are having, thank you so much for being here, is that this military heightening of the tension right now in crimea puts the ukrainian troops right now in a much, much worse situation. >> they have always been in a bad situation. they do not have the wherewithal. that's what timshanko told me today. russia is a military super power and the ukraine snlt. >> diana magnay has been covering the crisis. russia giving an ultimatum to the ukrainian troops. what can you tell us? >> reporter: hi, john. we do have a little more clarification on that. this alert came from interfaction, ukraine, that the ukrainian military had been given this ultimatum by the head

of the black sea fleet here in crimea. we have now spoken to someone from the ministry of defense. they say let's not put too much weight on this. frankly, every time that the russian troops have encircled military bases and they have now around ten, they have given some kind of an ultimatum. he said this is just another one of those. frankly, these ultimatums have passed and nothing has really happened. so i think it is important not to put too much weight on this deadli deadline. it is not necessarily an official deadline. from what we have seen, they have been very calm. it has been a very low key kind of invasion. ben wedeman our own ben wedeman was just at one of the border post bases. he said that the soldiers there, one commander told him he got his orders to leave his base at the black sea fleet on saturday.

he had come up there. the locals were giving him tea and letting him have a place to have showers. so it has all been very amicable. as i said, a pretty low-key invasion. the situation on the ground here is very, very calm. it seems to be the international community and the world markets and everyone else who is incredibly anxious. here, at the epicenter of it all, things are pretty calm. >> a low -key invasion. that's a phrase you don't hear very often. christiane was bringing up, the only thing people are hearing on the ground is russian propaganda at this point. >> diana herself has reported this propaganda war going on. those in the crimea listening to russian broadcasts and other kind of broadcasts. that is a real problem. it may be a low key invasion.

this is the way russia has managed not to fully tip the balance. it doesn't have its army there. >> so they whip the watching off their uniform. >> they still control it, militarily. >> if they want to, step back. they certainly are worried in kiev. yulia timashenko was literally white knuckling it and begging for international help saying that russia is about to take crimea from ukraine. >> have you ever seen any sign that flat me that flvladimir putin backs dow from anything? >> he hasn't said one word. putin is silent. what is his motive? what does he want? what is he going to do? we don't know. we can just read what's going on. >> is there any strategic point for him to extend this situation beyond crimea at this point? >> that's the big worry.

will he see what's happening here and see if he gets the red carpet to take over crimea. will they go on into eastern ukraine? that would be yet another crossing of yet another red line. >> if the united states could stop them, i use that phrase loosely. if the united states and western europe and everyone around the world can effectively contain the situation so that it stays in crimea, is that the best the west can hope for right now. well, you know, yeah, but then what, then what? you just hand crimea over to russia on a silver plat teter. it is a terrible precedent under international law. there has to be serious and creative diplomacy to make sure this does not happen. i know they are two different situations. the closest we have is georgia in 2008. there was a serious miscalculation and a

confrontation. the georgians lost and the russians won. it took years to stabilize the situation. >> six years later, it took years to stabilize the situation. >> they still have effective control or the influence they want to have right there. >> you have a democratic government right there. things are much better than they used to be. ukraine is bigger, more people. 45 million people instead of 5 million people. >> i want to welcome our viewers from around the world. we've been covering the breaking news. there appears to be an ultimatum to the troops. if you do not vacate, russian troops will take them by force. we have been talking to our reporter in crimea who says, maybe don't reach too much into this. it is part of a prop began ta war that they are trying to get into. the russians have dominated everything people are hearing on that peninsula. one thing everyone does agree on is that russia is in operational control of the crimean

peninsula. i am joined by christ tiianne amanpour. it is important. it is important in the lore of russia. >> here is the real thing. decades ago in 1954, it was given back. crimea in the 18th, 19th century, long time ago, was a focus of real antagonism and fight between the west and russia. here we are in the 21st century. in 2014, the soviet union is no longer. russia has committed itself to being a democracy. all those break-away republicing were independent, given their independence. most importantly, no matter where you want to go, back ten years, 50 years, 100 years, today's law states that this cannot stand. there is simply no reason, according to what's happened in crimea, even over this crisis,

to ratchet it up this high. crimeans haven't been killed by the ukrainians. there is no huge, military outburst, no big fighting in y crimea. you crain plays a very big role for the russians. >> one of the things that have been discussed is some action within this g-8. explain to our viewers, remind us what the g-8 is, what russia's role is and why they would care if they were no longer allowed to be part of this club? >> the gs are the nations of democracy and first-world economies. they have been growing over the years. the initial g-7 suddenly became the g-8 back in the late 90s or the mid-90s when president clinton decided to offer that sort of as a good will gesture to then president yeltsin. at the time, russia was basically on the u.s. side. the soviet union had collapsed.

it all sort of happened rather pie peacefully. all these new laws and republics became independent. what's happened since, there have been periods of cooperation between russia and the west and periods of real tension and cooperation. we are going through one of those now. the second presidency of vladimir putin has marked a dramatic escalation tension between russia and the united states, between russia and the west. the fact of the matter is when it comes to the g-8 russia is not a democracy. president putin has consolidated power to an extent that basically gives no room for any legitimate opposition, the press are rounded up and put in jail at any drop of the how the. right now, alexi nuvoni, one of the senior liberal politicians in russia, right after the sochi

game, when vladimir putin was putting on this fantastic show for the world, he gets put under arrest. the direction is clear. what needs to happen is serious and hard talk. because of that. the truth is that there are levels that the west can deploy. they have to decide if they are

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crimea. they are saying to leave or else the russians will take them by force. they will storm them. i want to go to moscow right now. our phil black who is there, what can you tell us about this? >> john, this is coming from a russian news agency, citing sources within the ukrainian ministry of defense. that is kind of a crucial point. the extraordinary thing in moscow is although it is waging military action in a sovereign company, the russian government and officials, they are not giving any sort of ongoing public commentary just yet about their actions have not officially recognized these are russian soldiers on the ground in ukraine. we have this report from a russian news agency from the ukrainian defense ministry saying an ultimatum has been given, 5:00 a.m. local time tomorrow.

otherwise, a storm will be brought down upon ukrainian forces. they say they have been receiving lots of ultimatums from russian forces on the ground. some of them had gone and past without effect. they believe it is a tactic that is being used by those russian forces to apply psychological pressure to the remaining ukrainian forces to try to get them to give up, drop their weapons and ensure that there is indoes puted control by those russian forces. >> so many are talking about vladimir putin. this is the extraordinary situation i was touching on. there is very little public comment from the very top.

angela merkel and so forth. other than that, we have not heard from president putin clearly outlining, precisely what his intentions are in carry willing out this action, even as i say, acknowledging the bear minimum, that these are, in fact, russian forces on the ground in crimea. common sense certainly suggests that. there would seem to be very little doubt about that whatsoever now. we only know from these leaked lines here and there. at the moment, it would seem to indicate that the kremlin, president putin's intentions are still pretty open. it would seem they are certainly holding on to crimea. very little chance to give it out to the central authorities in kiev. now, this very open-ended question of what that means for the eastern portion of ukraine. president putin told president that russia reserves the right to protect people that identify with russia.

russia is still keeping its options open about a further military incursion into that part of the country as well. phil black in russia. they do maintain operational control right now of the crimean peninsula no matter what uniforms they are wearing or what insignia they might have on their arms. he mentioned a phone call about president obama and vladimir putin. there were more today from vice president biden and the russian prime minister, dmitry medvedev. they spoke on the phone. go to michelle at the white house. what can you tell us about this discussion between the vice president and the russian number two? >> reporter: we just got a summary from the administration. we haven't had a chance to press them for more. it covers three points that the vice president urge russia to pull back troops and allow for the immediate deployment of international monitors in ukraine where the administration

and others have been calling for now for days and to start a meaningful political discussion with ukraine. the new ukrainian government says it is more than willing to do. what the russian response on this call was, what their attitude has been, that's what we are waiting to find out. yesterday, there was a call, a press call with senior administration officials where they were talking about that phone call between president obama and vladimir putin. it was asked repeatedly, how did russia respond to the president's urge can. putin insisted he had a right to be in ukraine but acknowledged there were diplomatic options available. we would like to know how this call today was received, if not

by putin, by the prime minister. >> the united states trying to explore these dum matic options. russian leaders seem to be opening the door a very little bit too. >> michelle kosinski at the white house, great to have you. we'll check back in with you in a little bit. this is happening half a world away right now on the crimean peninsula. it is having a very real effect today on people right here in the united states on american's finances, in fact. the stock market taking a big, big hit today. i am joined by cnn's chief business correspondent, my friend, christine romans. >> it doesn't look good. the dow down more than 190 points. that's an extension of earlier losses. we have corn up, wheat up, grain prices up. the ukraine is a big producer of these things. this unrest, worry, spreading into the grain markets.

crude oil up 2%. a large country with a small economy. it is where it sits, its ties to russia, the transport hub, so much of russian energy supplies into urine. it is incredibly important where it is and the gas and oil that runs through it. this is what's so precarious about this ratcheting up of concerns. there is that map we made for you. >> it is literally the pipeline to the west. all that gas from russia goes right through ukraine. >> you look at russian companies. right now, the russian companies that are russian but they trade on the new york stock exchange, the nasdaq. russian oil companies losing 6%, 7%. an exchange traded fund, the rsx, that tracks russia, down big. russian stocks hammered, 13%.

the ruble, tumbling. a record low to the euro and the dollar. the central bank of russia came in and jacked up interest rates to try to buffer and help its economy with all of these head winds. >> this matters not just to americans and their 401(k)s but it will matter diplomatically as well. these are the levers that u.s. negotiators can pull. >> if the sabre rattling continues, that urt hads markets for the week. >> we are covering the crisis in the ukraine. we will bring you the latest developments right after this break. captain obvious: i'm in a hotel.

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that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. welcome back. we are covering breaking news. russia has delivered an ultimatum to ukrainian forces in crimea saying they need to vacate their bases or face military storm those bases will be seized say the russians. we are covering every angle as the world faces what could be the most serious diplomatic crisis in more than a decade.

president obama face a true test of his leadership. he could propose sanctions whatever he does, he is already on the receiving end of a great deal of criticism. john mccain blasted the white house foreign policy while talking to the american israel public affairs committee. let's listen. >> i have to be very honest with you. there is not a military option that could be exercised. the most powerful and biggest and strongest nation in the world should have plenty and those options are many ranging from identifying these cleptocrats, the corruption people and the people that ordered it and the mag nitssky act, that's god for that. we could expand it and identify those people and it would be their last trip to los angeles.

there is a broad away of actions. this the ultimate result of effectless foreign policy where nobody believes in american's strength anymore. >> effectless foreign policy. let me bring in our guest, andrew cutchens. i think to an extent, you agree with senator mccain. you say the white house has been caught flat fofooted. >> i agree to an extend with senator mccain. he keeps on saying the military option is not on the table. i'm afraid that we need -- we can not be engaged in this crisis in a serious way and get to a point where we can negotiate with mr. putin from a

point of reasonable strength, by we, not only the united states but also our european allies an the current ukrainian government unless there is somehow a credible, military threat on the table in the event, in the event that the russian military intervention were to go further into the ukraine beyond the crimean boreds. we need to reposition some naval ships very coast to the ukrainian coast. i would hope that nato defense ministers can find a way to redeploy some of the troops and military installations on those countries boredi count countries bordering ukraine and get something close to an article 5 security guarantee for ukrainian sovereignty. perhaps using the budapest memorandum of 1994 when ukraine gave up its nuclear weapons. i don't want to make myself

sound like a war monger. mr. putin looks it take advantage of opportunities where he sees them, where he perceives his adversary is weak. that's what he has done in crimea. that's unfortunate. not disastrous. if they are to go beyond crimea, that will be an absolute disaster for ukrainians, russians, europeans, americans and specially for american credibility in the world. >> we are almost out of time here. let me make sure i follow up. you say the united states has to issue a credible military threat. you mentioned moving ships, nato forces being redeployed. do you think there is any appetite in the united states for any kind of action that involves american boots on the ground anywhere near you crain.

>> i am talking about military action that shows resoluteness. mr. putin basically thinks that president obama and the americans and the europeans are kind of whimps and that he can roll them when he sees fit. we have to change his perception. one of the tools we have to have in our tool kit to change that perception is the per section on his part, the concern that actually there could be a close military support for the ukrainian military forces in the event of violence outside of crimea. >> andrew cutchens, vladimir putin things the united states is whimps and nato are whimps. i appreciate you being with us right now. that's a statement i'm sure that will get a lot of attention in the white house right now i appreciate it. we are going to take a quick

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comment. coming from some russian authorities. we really don't know. clearly what is going on, russian has isolated crimea and is probably moving along the path to annex it. and what they're doing right now is because of their presence on the peninsula, the crimean peninsula, they have in essence taken control, completely, and

this ultimatum to be prepared for a storm of military actions or be prepared for an attack. i think really is simply a threat that's not necessarily going to have to be followed up. because if you can control a garrison location and if you can control activities in it a port, you don't have to follow up with any type of kinetic activity. it just takes some surveillance and presence on the part of the russians. >> the source of that right now, just to be clear, it's coming from the ukrainian defense ministry, spider. telling that to cnn. ambassador, let me ask you, what are the sense activities right now that the u.s., the united states has to be aware of. we're dealing with a new government just getting on its feet in kiev, dealing with a government in moscow and this crimean peninsula right now, and it's not clear who is in charge there, except for the fact that it's not ukraine. >> the russians have contributed to the formation of essentially

a government in crimea. the new leader in crimea received only 4% of the vote and the parliament and elections last fall. so there is not a man of popular support, but obviously someone the russians want to see in power. spider is right, there is no reason for the russians to issue this ultimatum, unless they're trying to provoke military action from ukraine so they can do something else. what we're seeing is blatant aggression, which president obama and secretary kerry have noted. and we have spoken about the need for sanctions against russia, unless it steps down from this effort to change the borders of europe. change borders of crimea and ukraine. and if we can persuade our western allies to join with us in levying economic sanctions against leaders in russia responsible for this, kicking russia out of the g-8, if we were to agree under nato to

deploy additional forces to countries in nato who have ethnic russian populations, because the russians like to use this as an excuse to take action against countries. first georgia and now ukraine. these may give russian leaders reason to think perhaps these actions are not in the national interests of russia. because they're certainly not in world interests of world peace and stability. >> so, spider, you say you don't believe this ultimatum, the ambassador doesn't believe there is much weight behind it either. so we've got just 20 seconds left. secretary of state john kerry lands in kiev in just a little bit. what should his response be? what should the united states do now in the face of this ultimatum, or should the u.s. just ignore it completely? >> no. we're certainly not ignoring it, nor should we at all. and the presence of the secretary of state in kiev is a good first move. the key is to deescalate. clearly, there are military actions we can take right now in terms of our u.s. navy and presence and ability to expand and have the ability to possibly build on to that, if necessary.

but there are other elements of power that need to be directed right now. they're political, they're infrastructural, economic, security measures. >> spider marks and ambassador john herbst, thank you tore are for being with us. "legal view" with ashleigh banfield starts after the break. [beep] [clicks mouse] nice office. how you doing? good. automatic discounts the moment you sign up. we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work.

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comcast was honored to bring every minute of every medal of nbcuniversal's coverage to every screen. so what's next? rio 2016. welcome to what's next. comcast nbcuniversal. -- captions by vitac -- www.vitac.com ukraine's identity crisis quickly escalating into a world crisis. russia seizes control of another nation's land. defying the west, threatening to undermine peace in europe. ukraine calls it a declaration of war. also this hour, bombshell testimony in day one of the bladerunner murder trial. could